EU Leaders In Delhi For Republic Day, Signal Momentum On India-EU Free Trade Deal

Last Updated:January 25, 2026, 18:47 IST

Costa and von der Leyen are chief guests for Republic Day celebrations on Monday, ahead of an EU-India summit on Tuesday.

Union Minister Jitin Prasada receives European Commission President Ursula von der Leyen upon her arrival in New Delhi.

European Commission President Ursula von der Leyen and European Council President Antonio Costa arrived in Delhi on Sunday as India and the European Union aim to finalise a landmark free trade agreement, capping nearly two decades of negotiations between the two economic powerhouses.

Costa and von der Leyen are chief guests for Republic Day celebrations on Monday, ahead of an EU-India summit on Tuesday. At the summit, both sides are expected to formally announce the free trade pact, described by officials as the “mother of all deals."

“President Costa is in New Delhi for the 16th EU-India summit taking place on Tuesday," the European Council said on X, adding that the meeting “will be an opportunity to build on the EU-India strategic partnership and further strengthen collaboration across key policy areas."

‘Historic Trade Agreement’

Ahead of the summit, von der Leyen said, “We are on the cusp of a historic trade agreement," underlining the importance both sides place on the pact.

India, the world’s most populous nation, is projected by the Monetary Fund (IMF) to become the fourth-largest economy globally this year. The country sees the EU not only as a key source of investment and technology to modernise infrastructure but also as a partner to generate millions of new jobs.

For Brussels, India represents a critical market as European exporters face US tariffs and Chinese export controls.

“The EU and India are moving closer together at the time when the rules-based international order is under unprecedented pressure through wars, coercion and economic fragmentation," EU diplomat Kaja Kallas said ahead of the summit.

Negotiations are reportedly still ongoing on a few sticking points, including the EU’s carbon border tax on steel exports and safety and quality standards in the pharmaceutical and automotive sectors.

Analysts say the deal is also likely to deepen strategic and defence cooperation, while facilitating the mobility of Indian professionals in Europe.

Union Commerce and Industry Minister Piyush Goyal welcomed the EU delegation, calling the bloc “an important economic and strategic partner for India." He added on social media: “We value our shared commitment to a mutually beneficial, ambitious India-EU FTA for the prosperity of our businesses and people."

The EU is India’s largest trading partner in goods. For the financial year 2024-25, total trade in goods reached around USD 136 billion, with exports at USD 76 billion and imports at USD 60 billion.

(With inputs from agencies)

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